Low Rate Loans
Why you should be interested in interest
Low rate loans mean different things to different people, especially lenders. The bank might think 10% APR is a low rate, but when other lenders are offering 6.7% you'd be mad not to shop around. Even with smallish loans, a few percent more means shelling out an awful lot of cash in interest payments.
Low rate loans are not created equally: slight differences in the Annual Percentage Rate (APR) can make a big difference to the cost of your loan. One lender's idea of low rate loans could be significantly more expensive than others: for example we've seen loans with APRs of 12% described as low rate loans when, without much effort, you can uncover stacks of lenders offering loans with APRs of half that amount.
When you're shopping for a loan it makes sense to get the lowest APR you can, but make sure you're comparing like with like: if interest rates go up during your loan period, you might be grateful that you went for a fixed APR of 6.8% instead of a tracker APR, which goes up if interest rates go up. Of course the reverse also applies: if you're stuck with a fixed APR and interest rates go down, you'll be inventing new and interesting swear words.
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